- Shares of Netflix sank more than 3% Monday after the company announced a new $1.5 billion debt offering.
- This latest round of junk bond offerings will add to Netflix's total accrued debt of $6.5 billion disclosed on its latest quarterly filing last week. The company is seeking yields between 5.75% and 6%, Bloomberg News reported.
- Netflix is stuck in a growing battle between bulls and bears.
- On one hand, cynics like Michael Pachter of Wedbush Securities say the ongoing cash burn could ultimately have negative effects.
- On the other, optimists like Stephen Ju of Credit Suisse say Netflix's plan to spend on 700 new shows this year will help it achieve "escape velocity" from its competitors.
- Netflix has outperformed its so-called FAANG peers in 2018 so far, and is up 58% since the beginning of the year.
Follow Netflix's stock price in real-time here>>